Shift factors for demand and supply

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Assume two goods: Coca-Cola and Pepsi Cola, which buyers assume to be substitute goods. (Note: if we have two goods, that means we need two graphs!) In the market for Coca-Cola, the number of firms producing it has decreased. Draw a supply and demand diagram. Also, write WHY the curve (or curves) is (are) shifting based on the shift factors for demand and supply. What is happening to the equilibrium price and quantity? Remember the concept of ceteris paribus.

Reference no: EM132228534

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